August 19, 2022 | Legal News
Australia’s New Franchise Registry
Australia recently amended its Franchising Code of Conduct to introduce an online public register of franchises operating in Australia. Franchisors will be required to comply with certain disclosure obligations through the register. The information required to be registered is minimal, such as the name of the franchisor, its Australian Business number (if it has one), and the franchisor’s business telephone number and email address. Certain documents, including the franchisor’s disclosure document, may be uploaded to the register, although some information will need to be redacted, including personal information relating to an individual other than the franchisor and information relating to a particular franchisee. The franchisor may also redact certain information that is of a commercial nature or is commercially sensitive.
The register will be publicly available and franchisors will need to confirm the accuracy of the register annually. Franchisors that have provided a copy of their disclosure document to a franchisee or prospective franchisee on or before October 31, 2022 are required to register by November 14, 2022, and any franchisor that issues a disclosure document after October 31, 2022 will need to be included on the register for 14 days before entering into a franchise agreement. A failure to register could result in a fine of up to AUD $133,000.